British equities edged lower on Wednesday, with the FTSE 100 slipping 0.1% amid subdued holiday trading and a firm pound. As of 09:57 GMT, the GBP/USD pair gained 0.2% to trade above $1.35, reflecting stability in the currency ahead of Christmas. Market activity was muted as the London Stock Exchange prepared for early closure, while major European peers saw mixed performance: Germany’s DAX remained closed, and France’s CAC 40 rose 0.2% in a half-day session.
Investors focused on corporate moves and sector-specific news, with energy, retail, and defence stocks drawing attention.
BP to Sell 65% of Castrol for $10.1B
In a major transaction, BP PLC (LON:BP) announced the sale of a 65% stake in its Castrol lubricants business to investment firm Stonepeak for an enterprise value of $10.1 billion. The deal is structured to generate roughly $6 billion in net proceeds for BP, including $800 million for pre-paid dividends on the retained 35% stake.
BP intends to allocate the proceeds entirely to reduce net debt, strengthening its balance sheet ahead of 2026. The divestment underscores BP’s ongoing strategy to streamline operations and focus on core energy assets.
Key points of the BP-Castrol deal:
- Enterprise value: $10.1 billion
- Net proceeds to BP: $6 billion
- Retained 35% stake dividend pre-payment: $800 million
UK Supermarkets Drive REIT Expansion
Supermarket Income REIT PLC (LON:SUPR) has expanded its property portfolio with the acquisition of three UK supermarkets totaling £97.6 million. The purchases include:
- Tesco in Aylesbury for £56.3 million
- Sainsbury’s in Sale for £33.8 million
- Waitrose in Frimley for £7.6 million
These acquisitions deliver an average net initial yield of 5.5%, reinforcing the REIT’s strategy of stable income generation through essential retail properties.
Defence Holdings Appoints New CEO
Defence Holdings PLC (LON:ALRT) confirmed a new Chief Executive Officer following a comprehensive, targeted search process. The incoming CEO is expected to assume duties in early Q2 2026, ahead of the initial January timeline indicated in recent operational updates.
The leadership change signals the company’s commitment to strategic growth and operational refinement within the defence technology sector, positioning it for innovation and market expansion in the coming years.
With holiday-thinned trading and key corporate developments, the FTSE 100’s modest decline contrasts with focused activity in sectors such as energy, retail, and defence. Investors are likely to monitor BP’s debt reduction, supermarket acquisitions, and leadership transitions as the market heads into the Christmas break.
